Prime Restaurants Royalty Income Fund Appoints New Trustees

MISSISSAUGA, ONTARIO--(Marketwire - Oct. 12, 2009) - Prime Restaurants Royalty Income Fund ("the Fund") (TSX:EAT.UN) announced today that Mr. Steven Sharpe has been appointed Chairman and a Trustee of the Fund's Board of Trustees, and a Director and Chairman of the Board of Directors of PRC Trademarks Inc. ("TradeMarkCo"). Mr. Paul Haggis has also been appointed a Trustee of the Fund and a Director of TradeMarkCo. Douglas J. Black, Kirsten Matthews and Douglas J. Queen have resigned as Trustees of the Fund and Directors of TradeMarkCo., and Kenneth W. Purdy has resigned as a Director of TradeMarkCo. The appointment of Mr. Haggis as a Trustee of the Fund, and the resignations of Douglas J. Black, Kirsten Matthews and Douglas J. Queen as Trustees of the Fund, are effective November 11, 2009. In order to maintain the Fund's voting control over TradeMarkCo, John Rothschild has resigned as a Director of TradeMarkCo. When another Fund-chosen Director is appointed, Mr. Rothschild will rejoin the Board of TradeMarkCo.

Mr. Sharpe is currently Managing Director of The EmBeSa Corporation, a private consultancy, advising clients across Canada and internationally primarily on corporate restructuring and business strategy. He is also Chairman of Advantage Oil and Gas Limited, a publicly-listed oil and gas company traded on the Toronto and New York stock exchanges. Previously, Mr. Sharpe was a co-founder and Managing Partner of Blair Franklin Capital Partners Inc., an investment bank, and Executive Vice-President of The Kroll-O'Gara Company, a New York-based multi-national corporation. Mr. Sharpe spent the first 20 years of his career practicing law in Toronto. In the past, Mr. Sharpe has been a director of a number of public and private companies, including Altamira Investment Services Limited, Foamex International, Inc., Security Technologies Group, Inc. and RMX Exploration Company.

Mr. Haggis is currently Chairman of the Alberta Enterprise Corporation and director of a number of public and private companies, including Chair of the Investment Committee of the Insurance Corporation of British Columbia (ICBC), Chair of the Audit Committee of Advantage Oil and Gas Limited, Chair of the Audit Committee of CA Bancorp, and Director of the Canadian Tire Bank. Prior to his current governance role he was President, Chief Executive Officer and Chief Investment Officer of the Ontario Municipal Employees Retirement System (OMERS), interim CEO of the Public Sector Pension Investment Board (PSPIB), and CEO of Princeton Developments. Mr. Haggis was also at Manulife Financial as Executive Vice President Development and Chief Credit Officer, and CEO of Alberta Treasury Branches Inc. He began his business career in banking and held various roles at the Metropolitan Life Insurance Company in Canada and internationally, concluding as Chief Operating Officer of Canadian operations. Mr. Haggis is a graduate of the University of Western Ontario and a Certified Director through the Directors College.

Messrs. Sharpe and Haggis have also been appointed as the Special Committee, the establishment of which was announced June 29, 2009, to examine various alternatives, including, potentially, to combine the Fund with TradeMarkCo and Prime Restaurants of Canada Inc. ("PRC") in order to reduce costs and maximize operating synergies.

"We are very pleased to have Steven and Paul join the Fund as Trustees. Their appointment will continue to bring significant experience, depth and wisdom to Prime, and we look forward to working with them to build our business as well as a renewed focus on enhancing value for our Unitholders and all stakeholders." commented John Rothschild, Chairman and CEO of PRC. "We thank the former Trustees for their contributions, and wish them every success in their future endeavours."

About the Fund

The Fund is a limited purpose trust authorised to issue an unlimited number of Trust Units ("Units") and established to invest in PRC Trademarks Inc. ("TradeMarkCo"). The source of revenue for the Fund is through its ownership in, and debt instrument issued by, TradeMarkCo. The Fund receives interest income on the TradeMarkCo Note which it distributes to its Unitholders. TradeMarkCo owns certain trade-marks and licenses their use to PRC which operates and franchises the restaurant and bar business. In return, TradeMarkCo receives royalty income from the royalty pooled restaurants operated and franchised by PRC.

The public communications of the Fund often include written or oral forward-looking statements. Statements of this type are included in this news release, and may be included in filings with Canadian securities regulators, or in other communications. Forward-looking statements may involve, but are not limited to, comments with respect to the Fund's objectives for 2009 and beyond, and the Fund's and PRC's strategies or planned future actions. All statements, other than statements of historical fact, contained in this new release are forward-looking statements, including, without limitation, statements regarding business strategy, plans and objectives of or involving the Fund and PRC. Readers can identify many of these statements by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" and similar words or the negative thereof. Although management of the Fund and PRC believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties including those discussed in the Fund's MD&A and the Fund's annual information form dated March 11, 2009, (the "AIF") under "Narrative Description of the Business – Risk Factors" which are available at www.sedar.com. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. We caution readers of this news release not to place undue reliance on our forward-looking statements because a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

The information set forth in the MD&A and AIF identifies factors that could affect the operating results and performance of the Fund and PRC. We caution that the list of factors discussed in the MD&A and the AIF is not exhaustive, and that, when relying on forward-looking statements to make decisions with respect to the Fund, investors and others should carefully consider the factors discussed, as well as other uncertainties and potential events, and the inherent risks and uncertainties of forward-looking statements.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release. Except as required by applicable securities laws, the Fund does not undertake to update any forward-looking statement, whether written or oral, that it may make or that may be made, from time to time, on its behalf.